Tag Archives: Europe

Millions of new cars remain unsold. Join the dots…

8 Feb

DSC00283roadwax

As more than 10 MILLION brand new cars join the ever increasing backlog of unsold stock across the World – four million cars in Europe alone – factory closures are now to become a reality.

Well-hidden and secure compounds across Europe, Asia and America are the usual first home for newly-born cars awaiting shipping to dealers. But these are now so full that dealers themselves are having to store cars in their already-packed yards.

The backlog of stored new cars in Europe now runs to four million. US sources point to a similar figure for America and things are so bad in China that Mercedes Benz are offering as much as 30% discount on some new models (S-Class, anyone?) as an attempt to shift stock.

No matter how politicians of all persuasions in all car-making countries try to dress it up, the fact is that production lines and whole factories now stand to be closed as a means of reducing output to match the drop in demand.

As Jorn Madslien’s BBC article here points out, the 7 – 10% annual drop in European demand since the Banking crisis of 2008 is set to continue through 2013 according to industry analysts.

There is no evidence to suggest that this trending reduction in demand will halt. Unemployment, static wages and financial insecurity continue to keep potential customers away from showrooms.021roadwax

What many ordinary people have overlooked in the last three years is the part that national politicians have played in this unfolding catastrophe.

Anxious to deflect criticism of themselves from voters already outraged at the corruption within the financial industry that has wrecked economic prospects, many political leaders have persuaded car giants to keep production at a steady level to avoid redundancies.

In the last three years, American car-making states have seen the quite shocking sight of trains loaded with brand new cars leaving the factories bound for the deserts – where the cars are simply off-loaded and parked up – as an alternative to laying off workers or reducing pay-packets.

Now, this temporary vote-buying strategy has resulted in such high levels of surplus vehicles that the need to close whole factories has replaced the idea of cutting the odd work shift. There is now no other option left.

Discounting of new car prices at dealership level is now rising into thousands of dollars. Some makes and models are almost dead in the water, effectively having so few interested potential buyers that they may as well not be offered.

Chrysler, for example, has more than six months worth of 2013 Dodge Darts parked up right now, as the Wall Street Journal’s article here reveals.

Six months worth of Dodge Darts. At what point does a ‘new’ car technically become an ‘old’ new car? Can a car that has sat out in the open for most of a year still be described as ‘new’? One can easily imagine the challenges that car manufacturers now face.

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But showroom price discounting – especially up to amounts like 30% – can wreak havoc with the residual value of that car’s marque. The prices of ‘nearly-new’ second-hand versions plummet at auction and fleet clients and Hire Purchase customers can become saddled with a kind of negative equity on their own vehicles. Fleet News made this point six months ago in their article here.

Some commercial vehicle manufacturers have been hit really hard as savvy fleet operators have held onto their trucks for an extra year or two to avoid this depreciation risk. One major truck maker sold zero units of its product in the UK in 2011 as regular clients simply sat tight.

General Motors has only now struggled back into profit in the US after years in the red with an unloved product range. Desperate for small cars it didn’t have, it hastily re-badged Asian Daewoo products, slapping a ‘Chevrolet’ badge on them and shipping them into America.

Now, it is watching as its twin European badges – Vauxhall and Opel – fight a desperate war to survive. It is abundantly clear that 7-10% over-capacity plus some ageing and inefficiently designed production facilities cannot be propped up at all cost.

roadwaxJeep 101

In this situation, the cost will be production line workers. There are no deserts in Europe to hide millions of unwanted cars.

The emerging giant economy of China fueled the revival of hopes in 2009 for top marques like BMW, Cadillac and Rolls Royce. Dying on their feet as Europe and America struggled with a banking collapse, these big names spearheaded a rush to satisfy Chinese auto sales volume growth of 46% in that year.

But by 2010 that figure had dropped to 32% and in early 2011 it slumped to 2.5%.

We are not supposed to use the word ‘problem’. The fashionable and politically correct word today is ‘challenge’.

The ‘problem’ is over-production of depreciating consumer goods.

The ‘challenge’ for today’s politicians is to find unemployed workers jobs that can generate their family a surplus income. Enough to buy yet more depreciating consumer goods and certainly more than enough to live on.

If today’s politicians actually have a solution to this challenge, then they are keeping very quiet about it.

 

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Human Rights Industry for sale. Click here to add ‘Human Rights’ to shopping cart.

6 Nov

If you are reading these words, then you are a conscientious citizen who cares about protecting human rights.

Or else,  you are an employee belonging to one of  hundreds of worldwide government organisations who monitor the internet for early signs of organised dissent.

If you fall into both categories then your body may soon be found by a passer-by.

If you are ‘time-poor’ or otherwise have a boss who wears sunglasses inside the office, here are the two links:

This one is to the RFK Training Institute.

This one is to the BBC who have written an online article about them.

Off you go. See you back here later.

Over the last two years, Roadwax has noticed a couple of disturbing trends within the media.

1) The increasing use of the term “Human Rights Activist”.

2) Investigative journalists who mock Twitter for being a fickle gossip shop yet all have Twitter accounts.

Let’s take a closer look:

1) “Human Rights Activist”. Er…someone who actively promotes human rights? Not just a “Human Rights Supporter” – someone who supports basic human rights but…well…someone who goes a little bit further. Maybe, too far.

Even the most right-wing dictator or left-wing Supreme Leader supports human rights. It always looks good on their CV or resume and calms fears that they might actually be a right-wing dictator or a left wing Supreme Leader. But hey, running around and actively supporting Human Rights – now, that is just asking for trouble. Best stay at home and click ‘like’ on a Facebook campaign when asked. Don’t push it. Don’t get active. You need to be a trained pro to do all that stuff. Best leave it to someone else.

On what date in history did we normal humans apparently stop actively supporting our rights? Or, is popular media beginning to use the term ‘active’ as a kind of negative adjective, a nudge in the ribs to their readers and viewers?

“Watch out for Dave. He’s an Education Activist. He openly questions the teachers at parent meetings.”

“Watch out for Ella. She’s an Animal Welfare Activist. She persuaded her local store to stop selling battery-farmed eggs.”

Supporters are supposed to fill seats in the stadium and watch the activists do the work.

Nonsense. Dangerous nonsense.

We should all be Human Rights Activists. We should regain ownership of the term.

Which brings me neatly to point number 2).

Again, in the space of a couple of years, Twitter has gone from lightweight world chat-room to premier source of breaking news.

How do we know? Well, we could conduct a simple scientific experiment:

1) Have a huge storm hit a major city. New York will do fine.

2) Go on to Twitter and watch what ordinary people say and upload as pictures.

3) When someone uploads a picture of a shark swimming in their yard…

4) Watch how long it takes in seconds before major news websites carry the story…

5) …before dumping  it and instead running a “How to Spot a Faked Photo” article.

So, without causing any cruelty or suffering to animals, we can test out how the major news-gathering organisations work these days.

They watch Twitter. They use a mixed bag of paid and unpaid freelance reporters to report from the front line. They use activists.

Staff reporters visiting dangerous places? Not likely. Have you any idea how expensive and embarrassing it gets when a staff reporter gets their head stuck in a toilet in a Kiev brothel or runs down a local warlord’s mother-in-law while driving a Sixt Rental Toyota in Afghanistan? Nope. Staff reporters do the restaurant reviews and click on Twitter.

The RFK Training Institute have spotted this trend. The BBC have spotted the RFK Institute spotting this trend. Roadwax spotted the BBC spotting the RFK…oh – you know how word travels.

The RFK Institute in Florence, Italy are opening their doors today.

They are offering to train Human Rights Activists how not to get caught, killed or disconnected. The big beasts. The ones who report human rights abuses in other people’s countries. Countries where nobody can tell who the guys with the guns and the Toyota pickup truck work for. The guys outside your house.

If you want any more information, email  Valentina Pagliai on:  pagliai@rfkcenter.com but do not waste her time. They are apparently looking to focus efforts on the most high priority cases – the men and women who already have to hide from tyranny to stay alive long enough to report it.

The BBC says that the RFK Institute are going to sell courses to teach human rights activists how to protect themselves online from being tracked, monitored, shut down or effectively marginalised.

The first students will enroll in January 2013.

Strange.

Instead of offering all this information free to everyone via the internet, the RFK Institute is carefully hand-picking a few whose names will be kept secret and who will be trained behind closed doors.

Instead of freely revealing all the tips and tricks that every human ought to be aware of to be kept safe while using the internet in 2012, RFK is teaching maybe fifty or a hundred paying guests.

They will become the elite who can protect themselves from prying agencies. RFK Institute will issue the qualifications, I assume. Control the market, as it were.

The RFK Institute has just created the Human Rights Industry.

It has just put a price on knowledge instead of uploading it for free to everyone.

If I become a donor to this charity, will I get a monthly newsletter that includes a helpful ‘handy tip’ on how to keep my freedom online? I doubt it. I sincerely hope not.

The RFK Institute appears to be ‘professionalising’ human rights activism.

My heart hurts.

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